Traders Concerned That "Flash Crash" was Omen of Events to Come
CNBC (Fast Money)
Was Flash Crash Legitimate?
As the market continues to break through key technical levels, traders are asking themselves a difficult question: Was the so-called Flash Crash legitimate, signaling a coming fundamental deterioration in the global economy or still just a computer glitch? ...
...In a report yesterday, the SEC said it still hadn’t discovered a single event that caused the drop and that it “found no evidence that these events were triggered by ‘fat finger’ errors, computer hacking, or terrorist activity, although we cannot completely rule out these possibilities.”
“The ‘Flash-Crash’ will prove to have been no flash in the pan, and the recent dip should serve as a warning, as to how fragile and thin our markets truly are,” said John Tabacco, founder of LocateStock.com, a service for short-sellers. “The warnings are there, in fact they are everywhere, but pundits keep coating it in sugar by categorizing the worst of news as the new normal.”
Was Flash Crash Legitimate?
As the market continues to break through key technical levels, traders are asking themselves a difficult question: Was the so-called Flash Crash legitimate, signaling a coming fundamental deterioration in the global economy or still just a computer glitch? ...
...In a report yesterday, the SEC said it still hadn’t discovered a single event that caused the drop and that it “found no evidence that these events were triggered by ‘fat finger’ errors, computer hacking, or terrorist activity, although we cannot completely rule out these possibilities.”
“The ‘Flash-Crash’ will prove to have been no flash in the pan, and the recent dip should serve as a warning, as to how fragile and thin our markets truly are,” said John Tabacco, founder of LocateStock.com, a service for short-sellers. “The warnings are there, in fact they are everywhere, but pundits keep coating it in sugar by categorizing the worst of news as the new normal.”